24 Apr 2024capital raising announcement● NeutralMajor
Equinox agreed to buy Orion's 40% of Greenstone for $995M, which would give it 100% of the mine, up from the 60% it held. Payment is 42.0M Equinox shares valued at $250M, $705M cash at closing and $40M cash by December 31, 2024. It will fund the cash with a new $500M three-year term loan and a bought-deal sale of 49,060,000 shares at $5.30 (about $260M). Shareholders are diluted and debt rises, in exchange for full ownership; closing is expected in Q2 2024. This follows the earlier Orion partnership and the Greenstone build, which the release says is in hot commissioning.